Which of the Following Statements Would Be False Regarding Application

question 71

Multiple Choice

Which of the following statements would be false regarding application of the variance analysis model to nonmanufacturing costs?

• A) The basic framework used for manufacturing is also used for nonmanufacturing costs.
• B) Merchandising and service organizations focus on marketing and administrative costs to measure efficiency and control costs.
• C) The need for analysis of price and efficiency variances in nonmanufacturing settings is increasing.
• D) Service organizations are unable to substitute different types of labor.

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Definitions:

Lot-For-Lot

A production and inventory control strategy that matches the order quantity exactly with the demand, without carrying any excess inventory.

Gross Requirements

The total amount of materials or components necessary to produce a product before accounting for any existing inventory.

MRP Services

Services that support the implementation and operation of Material Requirements Planning systems, helping businesses optimize their inventory and production processes.